Bitcoin’s first breakthrough of $120,000 marks a significant milestone for the world’s largest cryptocurrency and indicates that this week could be a milestone week.
Crypto Week, which begins on July 14, will witness the U.S. House of Representatives debate three bills that benefit the crypto industry, which promise to provide the U.S. regulatory framework that industry insiders have long demanded.
U.S. President Donald Trump has urged policymakers to change the rules to avoid filing numerous lawsuits against crypto companies like the U.S. Securities and Exchange Commission (SEC) during former President Joe Biden’s (2021-2025) term in favor of the crypto industry.
The anticipation of further positive news has fueled Bitcoin’s rise. Bitcoin has risen 29% year-to-date, hitting an all-time high of $122,055 on Monday. Bitcoin was the first cryptocurrency to start trading in January 2009 when it was worth just $0.004.
Bitcoin’s surge has sparked a general rally in other cryptocurrencies, with Ethereum, the world’s second-largest cryptocurrency, hitting a five-month high of $3,048.2 on Monday.
More generally, the industry’s total market capitalization has ballooned to approximately $3.8 trillion, according to CoinMarketCap.
Cryptocurrency is a form of currency exchange that allows people to bypass central banks and traditional payment methods.
What are the stakes?
U.S. lawmakers will discuss three key pieces of legislation during Crypto Week:
- The GENIUS Act aims to clarify the circumstances under which digital assets such as crypto tokens are securities or commodities and help startups avoid legal uncertainty by providing clear regulatory rules. The National Innovation Guidance and Establishing of U.S. Stablecoins Act (GENIUS Act) has passed the Senate.
- The Clarity Act will prevent federal agencies from using court rulings to overextend regulatory powers, ensuring that Congress, not the courts, defines how crypto assets are classified and managed.
- The Anti-CBDC Surveillance State Act would prohibit the Federal Reserve from issuing central bank digital currencies (CBDCs), arguing that it could enable the government to monitor Americans’ financial activities and threaten individual privacy.
This is a sharp reversal for an industry that once threatened to do business outside the United States, which said the United States has a harsh environment and strict enforcement.
Crypto companies have long accused U.S. financial regulators, such as the SEC, of setting confusing or conflicting rules.
Jag Kooner, head of derivatives at Bitfinex crypto exchange, told Reuters, “We expect capital that was previously marginalized due to regulatory uncertainty to re-enter …… Even if the final approval is blocked. ”
This week’s resolution could make it easier for companies to launch new digital asset products and trade cryptocurrencies.
Has the proposed legislation been criticized?
Democrats are expected to introduce amendments to the GENIUS Act and the Digital Asset Markets Transparency Act.
Critics argue that the Trump administration has made too many concessions to the crypto industry.
Democratic Senator Elizabeth Warren said at a Senate Banking, Housing and Urban Affairs Committee hearing on July 9, “I’m worried that my Republican colleagues want another industry aid.” ”
She urged Congress to prohibit public officials, including Trump, from issuing, endorsing, or profiting from crypto tokens.
Warren also argues that new crypto rules should not “open back doors to undermine” long-standing securities laws or allow crypto market volatility to spill over into the traditional financial system.
Finally, she emphasized that AML rules should apply to the industry. Cryptocurrency users are identified by alphanumeric wallet addresses rather than their names, allowing criminals to conceal the origin of their illicit funds.
The Biden administration has taken a strict regulatory stance on cryptocurrencies, aiming to regulate digital assets as securities and subject them to the same regulations as stocks and bonds.
: Bitcoin Soars to Over
$120,000 Bitcoin Price Has Soared Over 60% Since Donald Trump Was Elected President of the United States on November 5, 2024 (Al Jazeera)
What is Trump’s interest in cryptocurrency?
Trump, who was once a crypto skeptic, became a major supporter of crypto in last year’s presidential race and even became the first major political party presidential candidate to accept campaign donations through cryptocurrency.
According to the Federal Election Commission, during the 2024 election, crypto insiders spent nearly $250 million to support crypto allies and try to purge opponents.
In March, Trump said he would create a cryptocurrency reserve of five cryptocurrencies, including Bitcoin, adding that he would make the United States the “cryptocurrency capital of the world.”
Meanwhile, Trump’s family business has launched several crypto meme coins that are short-lived assets inspired by internet jokes or cultural allusions, such as “Trumpcoin” and “Melania Coin.”
Trump has been criticized for his conflicts of interest in his family business. For example, World Liberty Financial — a cryptocurrency group backed by Trump and his son in 2024 — has earned $57 million for the president.
In addition, Trump Media & Technology Group filed documents with the U.S. Securities and Exchange Commission (SEC) in July, seeking approval to launch its own “Crypto Blue-Chip ETF,” an exchange-traded fund (ETF) that holds Bitcoin and other digital currencies.
How has Bitcoin performed since Trump’s re-election?
If Bitcoin were a country, it would rank in the top 10 in terms of gross domestic product (GDP), roughly on par with countries like Brazil ($2.17 trillion) and Canada ($2.14 trillion).
Since Donald Trump’s re-election in November 2024, the price of Bitcoin has surged by 75%, rising from its closing price of around $69,539 on Election Day to its current high. In December last year, the price of Bitcoin exceeded $100,000 for the first time.
On February 25, cryptocurrency prices fell below $90,000 as Trump announced new tariffs on several countries and industries around the world, but the market rebounded after Trump announced “crypto reserves.”
Bitcoin’s rise has also been accompanied by broader economic uncertainties, particularly the global turmoil caused by Trump’s imposition of high and intermittent tariffs on major global trading partners and the ongoing conflicts in Ukraine and the Middle East.
“Bitcoin has shown resilience this year, rebounding in line with macro risk exposure after the tariff announcement,” Citibank analysts wrote in a research note last week. ”
